Distressed homeowners looking for relief may get Wachovia loan modification help with some new programs. Wachovia is trying to eliminate as many of the high risk Pick a Payment adjustable rate loans from their portfolio as quickly as possible. These loans featured a low, minimum payment rate that resulted in negative amortization for many confused borrowers who saw their loan balances increase each month.Wachovia holds one of the largest portfolios of these creative financing loans and have experienced high default rates as home values have declined and borrowers were unable to refinance. The Pick a Payment loans featured a very low start rate where the minimum payment was not enough to cover the total interest due each month. Consequently, the borrower's loan balance grew as the def...
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